A lot of panic about US-tariffs on cars in Germany, but I think it won't be that bad. Trump aims at three things: In the short term, he wants to "soften up" Europe for some kind of "negotiations" while raking in a bit of money, and in the long term he wants manufacturing to "come back" and replace income tax with tariffs. However, it is very unlikely things will go his way, for a number of reasons I will explain:
First of all, even cars made in the U.S. by U.S. companies like Ford and GM, 60% of the parts are imported, and they also produce 25-45% of their cars entirely in Canada and Mexico. Imports fro Europe are about 25% of the U.S. car market, with almost 2/3 from Germany. So what is going to happen with these 25% tariffs? There is a high likelihood these tariffs won't last, as they will drive up the costs of all cars in the U.S., not only the imported cars.
